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Bengaluru-based dairy tech startup Stellapps is in advanced discussions to raise around $20 Mn in its Series C funding round, Inc42 has learnt.

Almost 70% of the funding will be raised from existing investors, including Celesta Capital, Omnivore, Gates Foundation, IDH Farmfit Fund, Blume Ventures, and Qualcomm Ventures.

Confirming the development, Stellapps cofounder and CEO Ranjith Mukundan told Inc42 that a couple of new investors are also likely to participate in the funding round. However, he didn’t disclose the name of the new investors and the valuation at which the startup is looking to raise the funding.

The startup intends to utilise the fresh capital for further expansion, with a special focus on value-added dairy products. 

Founded by IIT alumni and ex-Wipro employees Mukundan, Ravi Shiroor, Ramakrishna Adukuri, Praveen Nale and Venkatesh Seshasayee in 2011, Stellapps provides a full-stack Internet of Things (IoT) platform to digitise and optimise the entire milk supply chain, right from production to procurement and storage. The platform also connects farmers with financial & insurance institutions, cattle nutrition providers, agro-input providers.

Around July last year, the startup also began processing milk to supply value-added dairy products to B2B companies.

The startup currently provides curd, ghee, paneer, buttermilk, double-toned milk, among others, to FMCG brands. It has two processing plants, one in Uttar Pradesh and another in Bengaluru, and is looking to add two more plants.

“We are also considering making ice-cream and selling it under a private label to other businesses,” Mukundan added. 

Responding to a question about choosing the B2B route for its dairy products, Mukundan said that B2C businesses require a lot of capital to create a brand and to acquire customers. 

Stellapps’ IPO Dreams

The dairy tech startup is eyeing an initial public offering in the next 36-48 months, as per the CEO.

“…we’re building our brand towards IPO and (want to) provide our investors a 5X return. We are working towards listing our company at around $450 Mn-$500 Mn valuation during the IPO,” Mukundan added.  

The startup is on track to close the ongoing financial year with revenue of INR 400 Cr and is eyeing a revenue of INR 2,000 Cr in the next three to four years. 

Stellapps last raised an undisclosed amount of funding from IDH FarmFit in 2022, a few months after it raised $18 Mn in its Pre-Series C funding round from global animal nutrition and aquaculture company Nutreco. 

Source : Inc 42 Jan 31st 2024

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